CHAPTER ONE
INTRODUCTION
1.1Background to the Study
Contractualization of labour has become a social phenomenon and a cankerworm in labour relations in various industries across the world. This is believed to be the result of the deliberate policy of the multi-nationals in productive and service companies, which created casual workers in place of permanent labour employment. That is, the placement of workers as temporary employees on jobs that is routine, contentious and permanent in nature (Wandera in Okoye, Okolie & Aderibigbe, 2014).
In developing economies like Nigeria which is bedevilled by the crisis of development and where labour market is saturated, most employers intention to keep cost of labour as low as possible has resulted in the proliferation of contract employment relations such as, casual work or part time work even though workers in these categories have prerequisite skills to hold full time jobs with varying implications for non-contract employment deficits (Okafor in Okoye & Aderibigbe, 2014).
However, the issue of contract employment relations and non-contract work is not the issue that is peculiar to the developing and emerging societies but also applicable to the developed countries of the world. The main difference may be that in the former, individual’s decision to engage in such employment may be driven by compulsion, while in the latter, it is driven by choice. However, in the developing and emerging countries, the issue of contract employment has been exacerbated by rapid economic globalization has resulted in massive labour migration and penetration of the multinational companies with capitalist inclinations to these regions (Okafor, 2010).
Moreover, the Nigerian government who ordinarily should be playing the role of a custodian for better labour relations in the country is found to be even culpable to the trend of contractualization of employment relations in the country. Umunna (2006) & Oya (2008) lay their voices to this when they postulated that in an attempt to boost Foreign Direct Investment (FDI), the Nigerian government often overlooked or lowered some vital labour issues. In doing this, the proliferation of various forms of contract employment relations have escalated with varying implications and challenges for the decent work agenda being promoted by the International labour Organisation (Okafor, 2010).
Some firms use the contract employment condition as a pseudo-probationary period to preview workers from whom they screen out those who fail to meet performance criteria or do not otherwise suitable for the organization, or extend an offer of long-term employment to desired individuals. Such firms may find significant benefit in developing a stronger, more meaningful employer-employee relationship with their contract workers. Again, individuals  inspiration to enter the contract labor market vary broadly and at times include the inability to secure more desirable or permanent work, or a desire or need for retraining or for greater choice in when and where to work (Okoye, Okolie & Aderibigbe, 2014).
The issue of contract employment in Nigeria has become so pervasive in the labour market, that the government who ought to stand against this trend is now hiring workers on contract basis for its enterprises. Therefore, the undertaking of this study will investigate the impact of Contract Employment on Service Delivery in the Public Sector with special reference to the Lagos State University (LASU) (Animashaun, 2007).